Hello, Idris here! Each week, I feature tips and stories from successful self-made founders, share insights on building great products. This week I want to share a summarised version of the product lessons we can learn from FigmaYou can find the full case study here
This week, we're spotlighting one of my all-time favourite design tools that's revolutionised our approach to design and collaboration: Figma.
Figma, conceived by Dylan, stands out as a collaborative cloud-based web application tailored for designing user interfaces. It made waves when it announced its $20B merger with Adobe in September 2022. However, this union was short-lived, lasting only 15 months, as regulatory concerns in the EU and the United Kingdom prompted its abandonment.
Recently, I stumbled upon an article featuring interviews with Dylan regarding the fallout of Figma's merger acquisition, along with his insights and future plans. I found it crucial to shed light on their journey, from the inception of Figma to what lies ahead. Here are some key takeaways that can enhance your product development journey...
Software is eating the world
You heard it correctly: software is truly revolutionising our world. I first encountered this concept from Gary Tan of YC, and it still astonishes me. Witnessing a small startup and its tool, created just 5-6 years ago from the ground up, surpass established leaders like InVision and Sketch, and even challenge industry behemoths like Adobe, is remarkable. The emergence of Figma demonstrates the profound influence of exceptional software on our work practices. Just half a decade ago, Figma was nonexistent, highlighting the transformative power of innovative technology
Staying True to Vision and Values
Despite the tumultuous aftermath of the Figma acquisition fallout, Dylan Field remained steadfast in upholding Figma’s fundamental values and mission. He reiterated the significance of prioritising user experience, nurturing a culture of innovation, and empowering designers globally. By unwaveringly adhering to these guiding principles, Figma not only endured but also flourished amidst adversity.
Revenue matters a lot
In the article, Dylan revealed that Figma had amassed a staggering $600 million in revenue, along with an additional $1 billion windfall from the fallout with Adobe – an astonishing sum indeed!
. Figma's billing strategy has become quite intense lately; even users on the free plan find themselves nudged towards upgrading. Initially, they adopted a strategy of offering low prices to attract a large user base and gather feedback. However, as they rolled out more features, they began to restrict access to some unless users upgraded. This shift essentially compels users, including small businesses, to pay for access to unlock the platform's full potential. Figma's journey underscores the importance of both creating an outstanding product and strategically developing revenue streams along the way.It’s okay to start with small pricing
From the outset, pricing served as a pivotal differentiator for Figma, setting it apart from competing tools and establishing a foundation of trust. Their affordability from the beginning fostered a strong bond with the community and solidified their reputation. By offering accessible pricing, Figma effectively lowered the barrier to entry for aspiring and novice designers, enabling them to learn the fundamentals of interface design and embark on a journey of career growth and skill development.
Be innovative and conquer
A standout feature that set Figma apart was its cloud collaboration functionality accessible directly from the browser. This meant you could access Figma from anywhere in the world without relying on your personal laptop, which was a game-changer for me. Unlike Adobe, Sketch, and InVision, who struggled to achieve this for a considerable time, Figma succeeded in providing seamless browser-based collaboration. This capability served as a crucial differentiator, emphasising the importance of identifying and leveraging unique strengths when building a product.
M&A deals all the way
With a substantial reserve of funds, Figma has been strategically acquiring products to enhance their workflows and processes, aiming to complete the value chain of software development from gaining buy-in to shipping and measuring. Their implementation of AI into their product began after acquiring Diagram, a small company founded by Jordan Singer, which utilised GPT-3 to generate design ideas with minimal input. This acquisition appears to be a promising addition from a product perspective, and it wouldn't be surprising if they pursued further acquisitions. Personally, I'm intrigued by the potential of tools that simplify coding, such as Framer for web design, or those with motion capabilities like ProtoPie, as well as the emergence of no-code tools that integrate design and development. The future holds much anticipation, and I'm curious to witness how it unfolds.
Communication is key always
You need to always communicate with your team and make them aligned about what’s happening always, Dylan Field prioritised transparency with figma employees, stakeholders, and the design community. By keeping lines of communication open and honest, Figma fostered trust and unity, strengthening its position in the market.
Learning from Setbacks
Field viewed the failed sale of the fallout as a valuable learning experience. He emphasized the importance of resilience in the face of adversity and the need to embrace failure as a catalyst for growth. By analysing the reasons behind the setback and learning from their mistakes, He characterised this as keeping your foot on the gas always at any point in time.
The in-depth version of the product lessons was posted here
Pls comment on your best product tip from Figma, I’d love to hear from you. I also try to feature indie tips and exciting product stuff
Looking forward to hearing from you